It’s a harsh certainty that a Blackley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Blackley property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of flat owners in Blackley will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Blackley with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with handle Blackley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After protracted discussions with the freeholder of her ground floor flat in Blackley, Abigail commenced the lease extension process as the eighty year threshold was swiftly approaching. The transaction was concluded in August 2014. The freeholder’s charges were kept to an absolute minimum.
Dr Hunter Richardson acquired a purpose-built flat in Blackley in September 1996. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative properties in Blackley with an extended lease were worth £270,000. The average amount of ground rent was £55 collected monthly. The lease elapsed on 18 June 2100. Having 74 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last year we were phoned by Mr Y Wright , who owned a newly refurbished flat in Blackley in June 1998. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar homes in Blackley with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 billed annually. The lease concluded in 2080. Taking into account 54 years remaining we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.